If you do, then you are also acutely aware that it is illegal to blatantly lie on your tax return. It is also illegal to not knowingly lie on your tax return because according to the IRC’s publication on general fraud, negligence is not a legitimate excuse.

You also know that convicted offenders lose their statute of limitations and can become indebted indefinitely to the IRS.This means the IRS can go back and review tax returns wherever they suspect fraud.

The Result:

You will lose credits like EIC, be charged penalties, incur fees, and even possibly receive jail time. That debt can lead to the garnishment of wages, seize and liquidation of assets, freezes and holds on accounts, and many more life lasting problems.

“ignorance is bliss.”

But I tell you that to tell you this. My father often says,

“Not all money is good money.”

And there’s a lot of truth to that. Because as easy as it is to lie on your tax return, telling the truth takes much more courage and integrity. So, I want you to think about that the next time you look to claim those charitable contributions on your schedule A.